Alabama Partners with DOL to Reduce Employee Misclassifications as Independent Contractors | Practical Law

Alabama Partners with DOL to Reduce Employee Misclassifications as Independent Contractors | Practical Law

Alabama became the 16th state to sign a memorandum of understanding (MOU) with the Department of Labor's (DOL) Wage and Hour Divison (WHD) to reduce the improper classification of employees as independent contractors.

Alabama Partners with DOL to Reduce Employee Misclassifications as Independent Contractors

by Practical Law Labor & Employment
Published on 10 Oct 2014 • Alabama
Alabama became the 16th state to sign a memorandum of understanding (MOU) with the Department of Labor's (DOL) Wage and Hour Divison (WHD) to reduce the improper classification of employees as independent contractors.
On October 2, 2014, the DOL's Wage and Hour Division announced that the Alabama Department of Labor (ADOL) entered into a memorandum of understanding (MOU) with the DOL to address the misclassification of employees as independent contractors. The ADOL and the DOL will partner to:
  • Enforce labor laws through cooperation and information sharing to ensure the protection of employee rights.
  • Provide an even playing field for employers who legitimately classify their workers.
Under the DOL's Misclassification Initiative, Alabama is the 16th state to enter into a MOU with the DOL, following California, Colorado, Connecticut, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New York, Utah and Washington.
For more information on classifying workers as independent contractors, see Practice Note, Independent Contractor Classification.